On March 20, FTC Chairman Joseph Simons spoke at the 2019 ANA Advertising Law and Public Policy Conference to discuss FTC consumer protection initiatives, including those that target advertisers who make deceptive claims about their products. Simons noted that focusing solely on fraudulent advertising is not sufficient, and that the FTC is committed to investigating deceptive advertising intended to mislead consumers, even if the product or service is legitimate. Simons cited several recent enforcement actions, including challenges to dietary supplement health benefit claims and deceptive environmental claims, and stated the agency is prepared to “proceed in federal court as warranted.” (See InfoBytes coverage here and here.) Simons also commented that the FTC is rethinking its approach to the types of remedies used to enforce consumer protection laws in order to both deter future violations and provide meaningful relief to harmed consumers.
Concerning targeted advertising and its connection to privacy concerns, Simons discussed three relevant “fundamental principles of consumer protection”: companies should (i) be fully transparent about the true nature of their data collection and sharing practices; (ii) focus on consumer outcomes when making business decisions to use consumer data; and (iii) make themselves aware of the practices of companies with whom they do business.